Scamocracy - Part II

The Broken Window Industrial Complex

Brief Note:

Apologies for the late sequel to the Scamocracy series, however it has turned out to be a blessing. This is a complex series that is attempting to provide a historical narrative to the complex war taking place against the global central banking cartel and their tax slave complex. The chaos in the financial markets after the much needed imposition of tariffs by President Trump highlights how big the stakes are in this existential battle between Freedom and Tyranny. It is important to stay focused on the long game that is playing out and not become embroiled in the short term gyrations that are almost inevitable as the horrible invisible enemy is whipsawed into oblivion.

Our goal is to use the #PrussiaGate lens to illustrate the correlations in history with our current events. The articles in this series are more complex and will take time to fully digest. Therefore, in our humble opinion, the time delays of our articles should help, rather than hinder our readers’ perspective on the issues we are presenting. On that note, we hope you enjoy part 2 of Scamocracy.

Scamocracy - Part II

In part 1, we used a parable to illustrate the exponential catastrophe a kingdom faces when they enter into compounding contracts. In the end the chess inventor used his ability to understand the long term consequences of his loan to destroy and dethrone the Ancient Indian emperor. The deception was not just in the contract itself. The chess inventor reinvested his ill gotten gains to blackmail, bribe and deceive the most powerful men surrounding the emperor.

The treasonous bureaucrats were using tax revenue to undermine the empire. This is the essence of a Scamocracy, and the exponential growth in scams works to destroy a nation from within. In the end, the bureaucrats became fabulously wealthy, the people were plunged into poverty and famine, the emperor was tricked into war and was eventually toppled by the cunning chess inventor; who had already struck a deal with the enemy to become the new emperor.

In part 2, we will show how economies can grow using a similar, non-linear method. Real growth in an economy allows all citizens to prosper over time, and improve the standard of living for society as a whole. We will also show how this is used by Scamocrats to enrich themselves. These are the two main forces at work today in our world, and eventually one will give way to the other in a spectacular fashion.

In #PrussiaGate, we have termed this the existential war between Freedom and Tyranny. We have defined Tyranny as it has evolved from the days of Enlightened Despotism, starting with Frederick the Great and the mighty Hohenzollern dynasty. Freedom vs Tyranny are two competing non-linear systems that are now engaged in a battle to the death, and the result is a predictably chaotic future for all of us in the short term. From here, it is up to each individual to contribute in a way to achieve real Freedom, or submit and serve Tyranny for generations to come.

Lies, Damn Lies, and Economics

On the whole, economics is not particularly useful for an individual. Various economic models are simply statistical manipulations that serve the worldview of the ideologies behind them. Communism is an economic model, as is Fascism, capitalism and even King Charles’ “Terra/Astra Carta” garbage:

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King Charles, in conjunction with the ReichsWEF, the EU and the Ukrainian sock-puppet, are deadly serious about their intentions to “reorganize” capital toward their vision of a “sustainable planet”. If we extrapolate King Charles’ vision of space, we can use his beloved Transylvania as a template, which is one of the poorest regions in Europe. Their version of Space exploration will not include any of us “commoners”, because we will be re-wilded into organ-harvesting smart-city gulags. Nevertheless, the Terra/Astra Carta initiative is an attempt to apply yet another economic model upon We the People.

These are just simple games of statistics and game theory. The economic model that Charles’ envisions is not only derived from Hitler’s “Nazi Model Company” playbook, it also completely relegates the individual men and women on the planet to the same legal status as the birds, bees, rivers and trees.

How could King Charles’ vision come into being? If we go back to the Great Rice Contract in part 1, the chess inventor used his ill gotten gains to pay off key people within the empire. Charles and his partnership with the ReichsWEF believe they can do the same by gradually taxing their citizens into oblivion, and rewarding the companies in their $6.7 trillion portfolio to carry out their wishes.

Put simply, it is a scam!

The Lesson

We will draw from the brilliantly short, but poignant work by Henry Hazlitt:

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The Lesson is made clear in a few paragraphs:

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We are going to look at the long-end outcomes of policies that are in play today. It is at the long-end that the “fat-tail” of unintended consequences can change the course of humanity forever. This is the primary focus of this #PrussiaGate series.

The Power Law of Prosperity

For individuals, there are power laws that can be used to approximate a pathway to genuine prosperity. There are only 3 inputs needed:

The formula for prosperity is quite simple.

Let’s say, for example, you begin your career with a certain salary, and that you are able to increase this by 5% per year. This could happen by gaining valuable experience in your industry over time, allocating a portion of your earnings to investments that grow over time, or a combination of both.

Now let’s assume, for the sake of the example, the cost of your living decreases by 1% per annum. This should be due to the gradual increase in productivity of goods and services in the broader economy. Innovators and entrepreneurs streamline processes, and are financially rewarded by the market for producing more and more stuff for less and less. The formula would look like the following:

Over 30 years, this will result in nearly a 6-fold increase in personal prosperity.

That’s not a bad place to find oneself after 30 years, but it obviously assumes a slow and steady race, without any obstacles along the way. Billionaires, on the other hand, have an even more powerful curve when it comes to their rise from nowhere. If they experience a 50% rise in income per annum, their prosperity is launched into the stratosphere.

What is important to note here is the dramatic role that time plays in the game. Of course, some billionaires pop out of nowhere, but many use the magic of time to exponentially compound on their success. Bizarrely, many billionaires supported the closet communist, Kamala, in the 2024 election.

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How anyone who has developed real, free market wealth could support Kamala and her policies is beyond the scope of critical thinking. However, as we noted in the Great Rice Contract, many billionaires make huge returns in a Scamocracy. Which brings us to yet another graph.

So far we have shown how the effect of productivity and making slow, compounding income gains creates real wealth. But this is not the real-world we have lived in over the past 4 years. Rising prices, and a shrinking job pool for domestic citizens has created the exact opposite effect. Wages have completely under-performed inflation, mortgage rates have risen dramatically, as has the general cost of living. The plandemic lockdowns have destroyed small businesses, which in turn have destroyed the livelihoods of billions of people around the world. If we invert the formula, the following chart emerges:

As you can see, if the O’Biden and Kamala regime had continued, we would have entered a period of rising costs and stagnant income growth. Within 30 years, the standard of living would have dropped by over 90%, and many would be left with absolutely nothing. This, of course, is the desired end-state of Klaus Schwab and his beloved ReichsWEF, but the story does not end there.

Over the last 4 years, what has transpired is a divergence in relative wealth. Some people have made billions of dollars from the vaccine patents, the war in Ukraine, and ridiculous contracts doled out by the Biden regime to NGOs and the programs of USAID.

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The wealth of an individual is relative to their peers. Ergo, if one group is going backwards, while another group is marching forwards, the wealth gap becomes an hyperbolic disaster.

Those who are not profiting from the massive amount of spending by Government treasuries begin to see their relative wealth decline over 30 years not by 90%, but by 99.7%! For many, this is the real world experience over the last 4 years. European, British commonwealth and American government policies have partaken in an explosion of “climate migration”, environmental boondoggles, wars, and insane central bank money printing. The new money has found its way into every Scamocrat’s pocket throughout the world, with the exception of one group, We the People.

The Broken Window Industrial Complex

We return to the second chapter of Economics in One Lesson, and the parable of the broken window.

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What is important to note here is how the young public menace was redefined as a hero. The little boy who helped grow the economy instantly became an expert in creative destruction.

The parable goes on to explain that, while the people concluded that the end result of the broken window was good economics, they neglected to take into account the fact that the shopkeeper was going to buy a new suit from a tailor down the road that afternoon. The tailor will no longer get that money, because it went toward replacing the broken window.

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If we extrapolate the story further, let’s assume the little boy is now craving yet more fame and starts throwing bricks through every window he can find. Everyone has to fork out $50 to replace their windows. In turn, everything their $50 was going to buy is now being funneled into the glazier’s business. He soon becomes the richest man in the village, while other businesses miss out on the $50 that was going to come into their shop.

Let’s go one step further and discover that the glazier was paying the little boy $5 for every window he broke. Not only is the boy making bank, the glazier has also made him part of the scam.

This is the underlying principle behind a Scamocracy.

Big Fat Bricks

In late 2019, there was a lab leak from the Wuhan Institute of Virology. When Trump declared this the “Chinese Virus”, he was immediately declared as an anti-Asian racist.

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We have since discovered that President Trump was correct, and even the CIA now agrees with Trump’s original hypothesis.

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If this is indeed the case, there are several possibilities that fork-off from this assertion. The first is that COVID-19 was a heavily funded bio weapon research project.

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Secondly, that the CCP and their allies around the world intentionally hid the outbreak in China to ensure that as many Chinese people as possible were able to spread (knowingly or unknowingly) the bio weapon around the world.

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Lastly, there were crazy stories emerging from China about locals eating bats from the Wuhan market:

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We are all familiar with what transpired thereafter throughout 2020. Draconian, worldwide lockdowns, travel bans, masks, PCR tests and mandatory quarantine camps. Most people succumbed to all of this because they were scared to death of a “virus” that they were convinced originated from crazy bat-eating Chinese.

By mid-2020, many people were staying indoors, wearing masks in their bedrooms, and glued to their televisions to get the latest plandemic updates. However, at the same time, a strange phenomenon emerged in the US. Completely disregarding the mask and lockdown mandates, the “Summer of Love” marked a series of BLAntifa riots throughout select American towns.

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Was this a coincidence, or did someone in BLAntifa actually read Henry Hazlitt’s Economics in One Lesson? Bricks, sticks and all sorts of shit were used to burn parts of America to the ground. Some may recall that the mainstream media described the events as “mostly peaceful”.

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The plandemic, the riots, and general madness were all blamed on President Trump. The mainstream media fuelled the flames, enraging people as their small businesses and livelihoods were all “bricked”. The final nail in the coffin was the widespread implementation of mail-in ballots for the 2020 election, resulting in an incredible 81 million alleged votes for Sleepy Joe Biden and his cackling sidekick, Kamala.

Once the fix was in, we all looked on in horror as Biden, somehow, staggered into the White House. Politicians, journalists, CEOs and central bankers all applauded the arrival of Biden and the end of the Trump-era. Remarkably, George Soros had predicted all of this just a few years earlier:

Proverbial bricks had been thrown through all the windows of the global economy. It was all blamed on Trump, and now with Biden’s robo-pen at the ready, it was time to enact the second part of Henry Hazlitt’s broken window parable. King Charles and the ReichsWEF were openly declaring their plans in a post-Trump world.

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This is the moment to truly reflect on what “building back better” has looked like over the last 4 years. Job terminations for refusing to get the DNA altering jab. Unprecedented illegal migration into Western countries. Inflation not seen since the 1970s, and 1.4 million job losses for US workers.

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Applied Broken Window-nomics

Let’s now use all of the information we have gathered thus far. If we go back to Henry Hazlitt’s broken window parable, the villagers decided that the brick throwing hoodlum ended up stimulating the economy by forcing the shopkeeper to spend $50 on a new window. But it took quite some time for the shopkeeper to earn that $50, because he was following the Prosperity Index we presented at the beginning of this article. In short, he was working hard to slowly improve his standard of living. The intended purchase of a new suit would symbolize this higher standard of living. The tailor was also looking forward to the purchase, so he could do the same.

Instead, all of this money was redirected to the glazier, and the path of the $50 took a completely different journey. (On a side note, imagine if the glazier was like Hunter Biden. The $50 would have gone towards crack and hookers, not the tailor and his children’s education).

This is important, because we can apply this parable to the real world we have just experienced over the last 4 years. 2020 was the year the global economy was bricked. Instead of the slow and steady growth Trump’s first term policies were creating (ie: cheap energy, edging toward peace, and reinvigorating American manufacturing), the world’s resources were instantly redirected to “building back better”.

Like the tailor in Hazlitt’s parable, We the People have experienced negative job growth and massive inflation. The Prosperity Index has inverted into a Misery Index. However, like the glazier, there have been a lot of people who have experienced immense wealth creation over the last 4 years.

The pharmaceutical companies, especially Pfizer and Moderna, became billionaire factories. The ReichsWEF CEO, Albert Bourla, became a pinup boy for the “build back better” movement. Some politicians around the world also mysteriously made tens of millions over the last 4 years. However, all of this pales in comparison to a the gains made by a particular group of companies, all from the same industry:

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The “Magnificent 7” have become the primary driver for financial markets since 2021, generating untold wealth for their shareholders. They all share one thing in common, and that is their role in the evolution of Artificial Intelligence. In a bizarre coincidence, AI has also been championed by Klaus Schwab, the ReichsWEF, and their treasonous politicians who “penetrated ze kabinets”:

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AI is the key ingredient for the creation of smart cities. Places which have been decimated by fires, floods and hurricanes, are all now earmarked to be rebuilt “sustainably” and will use AI as a surveillance tool for residents in the new smart city gulags.

2020 was the “year of the broken window”, and our money was instantly redirected by governments around the world to “build back better”, whether we liked it or not. Excess money printing flowed into the coffers of industries that served that purpose. This was not just an American problem. The problem was global.

Now let’s apply this concept to our very simple Prosperity Index model:

As you can see, there was a recovery, but We the People were not included. There was real money being spent by the Biden Treasury, but We the People did not get any of it. Instead, we were laden with exponentially rising debt levels to accommodate the maniacal plans of “building back better”.

Broken windows can be extremely profitable in a Scamocracy, so long as you are part of the scam.

A Century of Broken Windows

#PrussiaGate is replete with examples of how broken windows shocked the world, followed by resets and miraculous recoveries. Here is a brief timeline over the last century.

We begin in 1907, the first broken window of the 20th century:

While the panic of 1907 is often cited as the reason for the creation of the Federal Reserve Act of 1913, the Prussian Origins of the Federal Reichsbank presents evidence to the contrary. Paul Warburg travelled from Germany to join the German American investment bank, Kuhn, Loeb & Co. The families of Kuhn, Loeb, Schiff and Warburg all married into each others’ families, solidifying a powerful bond. By the early 1900s, this banking powerhouse became the most powerful lobby group in America, with the expressed goal to establish a central bank, modelled from the German Reichsbank.

The panic of 1907 was merely a broken window which gave Paul Warburg the impetus to convince Congress to pass the Federal Reserve Act, alongside the imposition of income tax. America’s monetary system was now under the control of a privately owned, central bank.

What is important to note here is that the Federal Reserve, which issues Federal Reserve Notes, could expand the money supply as the economy required. From that moment, if Congress needed extra money, they could only do so by issuing US Treasuries. These treasuries could only be paid back by future tax revenue, which is why income tax was also introduced in 1913. Gradually, as the national debt expanded, so too did the amount of taxes needed to pay back the debt.

Therefore, should any broken windows occur in the future, the Federal Reserve Act, income tax and the US government debt market could be at the ready to respond.

For the sake of brevity, let’s have a look at some of the broken window events since 1917:

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What should be clear from all of these events that shocked the world is that the answer to each broken window was more debt, more central banking, and more taxes. This is why, in Part 1, we presented the Ancient Indian parable about the Chess Inventor and his long term plan to bankrupt the emperor. Each scam became bigger and bigger, but the Great Rice Contract continued to be paid because key officials within the empire were in on the scam, making fortunes in the process. The end-state became patently obvious only when the empire faced almost certain collapse.

The Power Law of Productivity and Broken Window Chaos

Thus far we have presented the basic power of exponential growth. We have applied this to the growth of national debt, as well as how an individual can improve their standard of living by making slow and steady productivity gains. We have also explained how broken windows redirect funds into the “Broken Window Industrial Complex”.

If we now combine these two phenomena over the last century, we come up with an interesting, albeit theoretical, chart:

The chart above makes a few assumptions. The first is that Western Civilization makes slow and steady growth of between 1-5% per annum. The second assumption is that the shocks to the economy vary between 10-25%. These shocks are proverbial broken windows that destroy jobs, and in times of war these shocks also cost millions of lives. We can run this model thousands of times, but the general outcome will always be the same.

This is purely a mathematical model, but what do we notice about the chart? The answer is that humanity continues to progress over time, irrespective of previous shocks. However, as we have also explained, those shocks allowed funds to be redirected, and We the People generally do not get to participate in the huge recoveries that follow. If we now return back to the real world, with real world data, let’s see if our model has any correlation with reality:

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As you can see, our model looks similar to the exponential growth in productivity. However, wages have not kept up with the prosperity that productivity delivered. This is due to the shocks throughout the last century that We the People were forced to absorb.

How does this happen? Whenever something bad happens, governments around the world are at the ready to respond. Normally, huge rescue packages are bundled up and passed through the Congress and parliaments. To implement these rescue packages, governments raise money by selling bonds in the market. Central banks are at the ready to expand liquidity so that these bonds can be bought in the open market without disrupting the financial markets (ie: a bond collapse). Once the funds are raised, governments direct them to the industries that will “save us”.

In the end, We the People must somehow pay back these bonds in the future with taxes. Governments then expand their base of taxation, which effectively forces its citizens to pay for the shock with money that would otherwise have been used to gradually increase their own prosperity.

This no different to the broken window parable by Henry Hazlitt. Shocks are no different to broken windows, and we are the shopkeepers that can no longer afford to buy a suit from our favourite tailor, and instead must redirect our funds to the glazier.

That is why wages are no longer keeping up with productivity. It is also why the taxes we now pay are sky high, and why our national debts are at unsustainable levels with no apparent end in sight.

Every industry that amasses great wealth as a result of government funded “rescue packages” are now like the glazier in Hazlitt’s parable. Regardless of what they do, they can be collectively called the “Broken Window Industrial Complex”.

None of this would be possible without central banking, income tax, and a sovereign debt market that is now the primary driver of global financial markets. If bonds catch a cold, like they have over the last 4 years, our mortgages go through the roof, our stocks become volatile and our cost of living skyrockets. Our Personal Prosperity Index no longer measures our prosperity, but instead our misery.

Rice and Global Financial Markets

We must now use Hazlitt’s lesson and look well into the future to understand how things will be if we do not change course. Broken windows are all over the place, and our governments intend to keep spending like drunken sailors to fix the problems that were of their own making in the first place. At the same time, sectors like Big Pharma and Big Data AI have experienced trillion dollar growth.

If nothing changes, the words of Thomas Jefferson will come to fruition in the not too distant future.

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Our sovereign debts are no different to the Great Rice Contract we laid out in Part I, and the end-state will be the same if changes do not happen immediately. Sovereign nations will collapse, and new forms of AI-driven governance will emerge, exactly as Herr Klaus Schwab, King Charles and the ReichsWEF have openly wished for.

Some regions are neck deep in broken window scams and appear to have no intention of stopping.

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The election of Trump as the 47th President marks a period in history where the People have demanded change. Team Trump and the DOGE are attempting to do exactly that. DOGE is exposing a myriad of scams, while Trump’s team is setting the stage for the largest geo-economic transformation in world history.

This is not just about an economic theory. Central banking, taxation and trade must be thoroughly restructured, otherwise nation states will collapse into oblivion.

Thus far, we have presented various simple non-linear models and combined them to shed light on the global Scamocracy we all suffer under today. As time progresses, this non-linearity will deliver chaos and misery to the unsuspecting citizen.

President Trump is the true leader of the free world. He is promoting peace through strength and prosperity through trade. He is openly criticizing the Federal Reserve and taking aim at the income tax system that feeds the beast.

Can Trump and his team use the powers vested to them under the Constitution to put an end to the exponential enslavement of humanity, once and for all?

To be continued…

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  23. https://www.researchgate.net/figure/Wages-and-Productivity-Development-in-the-USA_fig2_279922057 ↩︎

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  25. https://21stcenturywire.com/2025/03/20/eu-covets-citizens-savings-to-invest-in-rearm-europe-plan/ ↩︎